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Context: The Geographical indication (GI) tag for Goan cashews holds significant implications for the cashew industry in Goa.

Significance of GI Tag for Goan Cashew

• The GI tag ensures that cashews bearing this label are authentic products originating from Goa. This helps consumers distinguish between genuine Goan cashews and those sourced from outside the state, which are often falsely marketed as 'Goan cashews.'
• Goan cashew manufacturers and processors can use the GI tag as a trademark in the international market. This protection helps safeguard the reputation and quality associated with Goan cashews.
• Goa has a long history of cashew cultivation, and the GI tag helps in preserving the cultural and historical legacy of Goan cashews.
• By promoting authentic Goan cashews, the GI tag can potentially boost the demand for these products, benefitting local cashew producers, manufacturers, and the state's economy.

Historical Context of Cashew in Goa

• Cashew was introduced to Goa by the Portuguese in the 16th century. Initially, it was primarily cultivated for afforestation and soil conservation purposes. However, it was not until a century after its introduction that the economic value of cashew nuts became apparent.
• The edible value of cashew nuts was reportedly discovered by Goan prisoners who were exiled to the Portuguese territory of Africa (Mozambique) during Goa's freedom movement in the mid-18th century.
• The first cashew factory in Goa began operations in 1926, and the first consignment of cashew kernels was exported in 1930. Over time, cashew production transitioned from a cottage industry to a large-scale one, driven by demand, particularly from the United States.
• Before Goa's liberation in 1961, the region exported substantial quantities of processed cashew nuts, both locally grown and imported from Portuguese colonies in Africa. On average, around 1500 tonnes of processed cashew nuts were exported to countries like the USA, Japan, Saudi Arabia, and West Germany.
• The cashew processing industry accounted for about 60% of industrial production in Goa by 1961, and it was a significant contributor to foreign trade. Various factors, including favourable import duties, port expenses, lower rents, wages, and salaries, contributed to the industry's growth and success.

Recent Challenges in the Goan Cashew Industry

• In recent years, the Goan cashew industry faced challenges due to the influx of cheaper imported cashews, often falsely labelled as 'Goan cashews' by small traders from other states. These traders did not always meet quality and compliance norms, affecting the reputation of Goan cashews.
• The competition from cheaper cashews, along with higher minimum wages and compliance standards compared to other states, resulted in a decline in sales for traditional Goan cashew processors. The number of processing units in Goa decreased from 40 in 2005 to over 15 at present.
• The GI tag is expected to address some of these issues by ensuring that authentic Goan cashews are protected, promoted, and recognized in the market, both domestically and internationally. It will help in distinguishing Goan cashews from others and potentially boost demand for the region's unique cashew products. Additionally, the government's crackdown on illegal marketing practices is expected to further protect the authenticity of Goan cashews and support the local industry.

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GI TAGS: https://www.iasgyan.in/daily-current-affairs/gi-tags-list-updated

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